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EXERCISE V

Assets Equities
Equipment 2,000 Paid-in Capital 3,000
Land 2,500 Retained Earnings 1,000
Office Supplies Inventory 1,200 Loan Payable 2,400
Accounts Receivable 3,600 Tax payables 900
Cash, Bank 3,900 Accounts payable 3,700
Prepaid expenses 3,000 Salary payable 1,200
Unearned rent revenue 4,000
Total assets 16,200 Total equities 16,200
ASSETS ACCOUNTS
CASH, BANK OFFICE SUPPLY INVENTORY ACCOUNT RECEIVABLES EQUIPMENT LAND PREPAID EXPENSES
Dt Ct Dt Ct Dt Ct Dt Ct Dt Ct Dt Ct
EQUITY AND LIABILITIES ACCOUNTS
PAID IN CAPITAL RETAINED EARNINGS TAX PAYABLES ACCOUNTS PAYABLES LOAN PAYABLE SALARY PAYABLES UNEARNED RENT REVENUE
Dt CT Dt Ct Dt Ct Dt Ct Dt Ct Dt Ct Dt Ct
TEMPORARY ACCOUNTS
4
12
transactions
1. Cash-Purchase of € 1 800 of Office Supplies Inventory
2. Performed consulting services, for which we received € 2,100 cash immediately
3. Received an invoice for a series of advertisements, € 1 200, that appeared in the local news during December and will be paid in January.
4. Performed advertisement services for Customer XYZ, for which we will receive € 3,000 on 2 month credit sale.
5. Paid salaries to employees of € 1 200 for December.
6. Received an invoice for external services of € 1 400 for December to be paid with 60 credit term
7. Paid outstanding tax payables
8. Paid trade creditors € 1,300.
9. Account for salaries that have been executed in December for the amount of € 1 300.
10. The cost of office supplies used during December is € 1,100
11. In the beginning of September 2014 a subscription rights for local newspaper magazine of € 6 000 was paid for half-a year term in advance;
12. In the beginning of October 2014 company receives rent for 6 months in advance, €6,000
13. At the end of the month Company repaid to the Bank credit tranche 500 and paid interest charges (interest rate as of 10 % p.a.)
14. Depreciation of equipment for December amounts to € 100.
INCOME STATEMENT
EXPENSES REVENUES
Assets Equities
Equipment Paid-in Capital
Land Retained Earnings
Office Supplies Inventory Loan Payable
Accounts Receivable Tax payables
Cash, Bank Accounts payable
Prepaid expenses Salary payable
Unearned rent revenue
Total assets 0 Total equities 0